Polycarbonate polyols may be used as components in the formation of certain polyurethanes, such as polyurethanes used for elastomers or coatings. Polycarbonate polyols may be prepared by reacting at least a polyol component such as 1,4-butanediol, 1,5-pentanediol, 3-methyl-1,5-pentanediol, 1,6-hexanediol, 2-methyl-1,8-octanediol, 1,9-nonanediol, or 1,4-cyclohexanedimethanol with an organic carbonate, such as for example dimethyl carbonate. Particularly polybutylene carbonate polyols are of interest. Polybutylene carbonate polyols are made by reacting 1,4-Butanediol and dimethyl carbonate. However, this reaction has a low yield, typically less than 75% of the theoretically obtainable yield. One of the major side products is tetrehydrofuran (THF) which needs to be removed from the final product. Therefore there is a need for a method of producing polybutylene carbonate polyols with less THF formation and thus with a higher yield.